Closing time: Establishments numbers fall as revenue continues its persistent decline

The music has stopped for many nightclubs over the past five years due to legislation that extended the licensing hours of other drinking establishments. Nightclubs have lost their competitive advantage because late-night revellers can now stay in pubs or bars, many of which offer a wider selection of drinks, lower prices and a more relaxed atmosphere. This has contributed significantly to the industry's long-term decline.Approximately one-third of nightclubs have closed in the past decade, as operators have struggled to respond to new challenges from regulation, licensing, planning, business rates and policing. Many consumers purchase cheap supermarket alcohol to drink before going out rather than buying more expensive drinks in establishments, constraining industry more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Drinks revenue has fallen as customers opt to buy alcohol from supermarkets to pre-drink
  • Declining alcohol consumption among the student population has put pressure on the industry
  • Economic uncertainty is expected to cause young people to limit their discretionary spending
  • Industry Report - Industry SWOT Analysis Chapter

    The Nightclubs industry is in the decline stage of its life cycle. Industry value added, which measures the contribution made by the industry to the economy, is estimated to decline at a compound annual rate of 4.1% over the 10 years through 2023-24. This suggests it will perform much worse than UK GDP, which is expected to grow at a compound annual rate of 1.7% over the same period. As a result, the Nightclubs industry is anticipated to account for a smaller portion of the UK economy in 2023-24 than it did at the start of the 10-year period.Legislative changes have increased external competition because pubs and bars are able to remain open for longer. Thi...purchase to read more.

    Additional Insights for the Nightclubs Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Nightclubs Industry are

  • Having a high profile in the market
  • Development of new products
  • Must have licence
  • IBISWorld analysts also discuss how external factors such as Demand from pubs and bars and trade alcohol prices in the Nightclubs industry impact industry performance..

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    What's in this report

    What is the Nightclubs Industry?

    This industry covers licensed establishments that sell beverages for on-site consumption and usually charge a fee for admission. This may come in the form of an entrance fee or a membership fee. They commonly provide musical entertainment and dance venues. The industry does not include public houses, bars, hotels or restaurants.

    Industry Products
  • Drinks
  • Club access
  • Venue hire
  • Industry Activities
  • Operating nightclubs
  • Serving alcoholic and non-alcoholic beverages
  • Providing musical entertainment and access to a dance floor
  • Operating social clubs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from pubs and bars
  • trade alcohol prices
  • Real household disposable income
  • Youth unemployment rate
  • Population aged 16 to 25 years

  • Current Performance
  • Late-night licences
  • Retail competition
  • Changing habits
  • Constrained margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Capital growth
  • Spending pressures
  • Expanding operations
  • Table: Nightclubs Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Nightclubs Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Alcoholic Beverage Wholesaling
  • Audio & Video Equipment Retailers
  • Furniture, Carpet & Lighting Wholesaling
  • Sound Recording & Music Publishing

  • Products & Services
  • Drinks
  • Club access
  • Venue hire
  • Other
  • Chart: Nightclubs Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 18 and 24
  • People aged between 25 and 34
  • People aged between 35 and 55
  • People aged 55 and over
  • Chart: Major Market Segmentation for the Nightclubs Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRentOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Nightclubs

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Nightclubs Industry

  • Industry Globalization
    The Deltic Group Ltd,
  • Table: The Deltic Group Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Nightclubs Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Nightclubs Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Term used for a shop licensed to sell alcoholic beverages for consumption off the premises.
  • On-Licence
  • This allows a club to supply alcohol for consumption on-site.
  • Pre-Drink
  • The practice of drinking before attending nightclubs so as to cut down on drink purchases at the venue.
  • Social Club
  • A venue that provides a location for members to meet for social gatherings. Membership fees are charged but many offer drinks, event space and sports facilities at reduced prices for members.
  • What Our Customers Say

    Why buy this report?

    The Nightclubs market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Nightclubs:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Nightclubs market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Nightclubs, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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